On Guidelines for Representing Business Models (original) (raw)
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The importance of the business model concept has been risen since the emergence of e-business companies in the beginning of this millennium, who used it as an instrument to convince potential investors of their promising future . However, the underlying economic concepts have a broader applicability as the business model concept is a representation of the way in which a company implements its strategy, which is aimed at creating value for both the customer and the enterprise. In other words, the business model concept reflects the strategic choices made by a company, their consequences for the way the enterprise is doing business and what is required hereto.
2013
The importance of the business model concept has been risen since the emergence of e-business companies in the beginning of this millennium, who used it as an instrument to convince potential investors of their promising future . However, the underlying economic concepts have a broader applicability as the business model concept is a representation of the way in which a company implements its strategy, which is aimed at creating value for both the customer and the enterprise. In other words, the business model concept reflects the strategic choices made by a company, their consequences for the way the enterprise is doing business and what is required hereto.
Frameworks for understanding and describing business models
This paper provides in a chronological fashion an introduction to six frameworks that one can ap- ply to describing, understanding and also potentially innovating business models. These six frameworks have been chosen carefully as they represent six very different perspectives on business models and in this manner “complement” each other. There are a multitude of varying frameworks that could be chosen from and we urge the reader to search and trial these for themselves.
Structuring and visualisation of business models
Gazdaság és Társadalom, 2012
Business models attracted the attention of practicians and academics at the beginning of the 90 s , mostly during the dot.com era. New breakthrough technologies required a different way of making value for a customer and for a company than in the preceding era. It sparked an interest in this topic retrospectively in traditional branches of business too. The article compares an array of business model concepts picturing a company and business in various ranges of detail and through various methodologies. The purpose of business models comparisons and their ways of visualisation, is to give a true picture of main attributes of individual models, to know their functioning more deeply, divide them on the basis of similar parameters into relevant groups, to study a purpose and functionality of their visualisation, to classify ways of visualisation and by this way to contribute to a deeper knowledge of this relatively new theme of business economics and management.
Clarifying business models: Origins, present, and future of the concept
Communications of the …, 2005
This paper aims to clarifyi the concept of business models, its usages, and its roles in the Information Systems domain. A review of the literature shows a broad diversity of understandings, usages, and places in the firm. The paper identifies the terminology or ontology used to describe a business model, and compares this terminology with previous work. Then the general usages, roles and potential of the concept are outlined. Finally, the connection between the business model concept and Information Systems is described in the form of eight propositions to be analyzed in future work.
The Constructs of a Business Model Redefined: A Half-Century Journey
SAGE Open
and it really seems that the business model is emerging as a new unit of analysis (Zott et al., 2011). These authors offer a variety of definitions, but a general consensus on the definition of the business model has not been reached. The term has been frequently confused with other popular terms in the management literature such as strategy, business concept, revenue model, economic model, or even business process modeling (DaSilva & Trkman, 2014; Morris, Schindehutte, & Allen, 2005). As a generally accepted definition of the business model does not exist, it is not surprising that the constitute elements of the business model are not clearly defined too. Despite many efforts (e.g.
Modern Notation of Business Models: A Visual Trend
2014
Information overflow and dynamic market changes encourage managers to search for a relevant and eloquent model to describe their business. This paper provides a new framework for visualizing business models, guided by well-shaped visualization based on a mind mapping technique introduced by Tony Buzan. The authors’ approach amplifies Alexander Ostervalder’s ideas on the new level of abstraction and well-structured description of business models. It also seeks to simplify the Osterwalder model. As a result, the new form of visualization enhances perception, increases the quality of business communication and decreases cognitive pressure.To evaluate the proposed framework’s efficiency, the authors conducted a pilot study involving a survey of 22 experienced top-managers of Russian companies and examined their perceptions of three ways of describing the same business model: a linear text, a Canvas business model by Osterwalder, and a business model mind mapping template. We used Mindje...
The Development and Experimental Evaluation of a Focused Business Model Representation
Business & Information Systems Engineering, 2015
Business models (BM) are the central concept to understand the business logic of an organization. Enterprise modeling contributes to the conceptualization of BMs by providing explicit representations. A proper BM representation helps to increase the understanding and communication about the underlying knowledge for the stakeholders within a company. However, the existing enterprise modeling languages have a different and partial focus on the BM concept due to their various backgrounds. This prevents the largescale adoption of these representations in practice. Therefore a focused BM viewpoint is developed, which explicitly facilitates the understanding about the underlying BM components. To this end, existing diagrams of the value delivery modeling language were adapted to prescriptions of the physics of notations, which is a normative theory for cognitive effectiveness of diagrammatic representations. The effect on the understanding was evaluated by an experiment with 93 master students. The results confirm the research hypothesis that the new BM viewpoint increases the understanding of the modeled BM components.
Conceptualising Business Models: Definitions, Frameworks and Classifications
The business model concept is gaining traction in different disciplines but is still criticized for being fuzzy and vague and lacking consensus on its definition and compositional elements. In this paper we set out to advance our understanding of the business model concept by addressing three areas of foundational research: business model definitions, business model elements, and business model archetypes. We define a business model as a representation of the value logic of an organization in terms of how it creates and captures customer value. This abstract and generic definition is made more specific and operational by the compositional elements that need to address the customer, value proposition, organizational architecture (firm and network level) and economics dimensions. Business model archetypes complement the definition and elements by providing a more concrete and empirical understanding of the business model concept. The main contributions of this paper are (1) explicitly including the customer value concept in the business model definition and focussing on value creation, (2) presenting four core dimensions that business model elements need to cover, (3) arguing for flexibility by adapting and extending business model elements to cater for different purposes and contexts (e.g. technology, innovation, strategy) (4) stressing a more systematic approach to business model archetypes by using business model elements for their description, and (5) suggesting to use business model archetype research for the empirical exploration and testing of business model elements and their relationships.
Business models: A challenging agenda
Strategic Organization, 2013
The current literature on business models lies mainly in the literature on strategy and competitive advantage and focuses on their role as descriptors of actual phenomenon, often by reference to taxonomic categories. In this essay we explore how business models can be seen as a set of cognitive configurations that can be manipulable in the minds of managers (and academics). By proposing a typology of business models, that emphasises the connecting of traditional value chain descriptors with how customers are identified and satisfied, and how the firm monetizes its value, we explore how business model configurations can extend current work on cognitive categorization and open up new possibilities for organisation research.